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1. Company Snapshot

1.a. Company Description

CVB Financial Corp.operates as a bank holding company for Citizens Business Bank, a state-chartered bank that provides banking and financial services to small to mid-sized businesses and individuals.It offers checking, savings, money market, and time certificates of deposit products for business and personal accounts; and serves as a federal tax depository for business customers.


The company also provides commercial lending products comprising lines of credit and other working capital financing, accounts receivable lending, and letters of credit; agriculture loans to finance the operating needs of wholesale dairy farm operations, cattle feeders, livestock raisers, and farmers; lease financing services for municipal governments; commercial real estate and construction loans; and consumer financing products, including automobile leasing and financing, lines of credit, credit cards, home mortgages, and home equity loans and lines of credit.In addition, it offers various specialized services, such as treasury management systems for monitoring cash flow, merchant card processing program, armored pick-up and delivery, payroll services, remote deposit capture, electronic funds transfers, wires and automated clearinghouse, and online account access.Further, the company provides trust services through its CitizensTrust Division, such as fiduciary services, mutual funds, annuities, 401(k) plans, and individual investment accounts.


As of December 31, 2021, it operated 58 banking centers located in the Inland Empire, Los Angeles County, Orange County, San Diego County, Ventura County, Santa Barbara County, and the Central Valley area of California; and three trust offices located in Ontario, Newport Beach, and Pasadena, as well as two loan production offices in California's Central Valley and the Sacramento area.The company was founded in 1974 and is headquartered in Ontario, California.

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1.b. Last Insights on CVBF

CVB Financial Corp.'s recent performance was driven by strong Q4 2025 earnings, with net earnings of $55.0 million, or $0.40 per share, and a return on average assets of 1.40%. The company's net interest margin was 3.49%, and its full-year 2025 net earnings were $209.3 million, or $1.52 per share. A merger with Heritage Commerce Corp was announced, expanding Citizens Business Bank's presence in the Bay Area. The company's earnings met estimates, and its share price crossed above its 200-day moving average.

1.c. Company Highlights

2. Bank Reports Solid Q4 Earnings, Driven by Loan Growth and Stable Asset Quality

The bank reported net earnings of $55 million, or $0.40 per share, representing its 195th consecutive quarter of profitability. The results were driven by a 6% increase in net interest income to $122.7 million, compared to the third quarter of 2025. The bank's return on average tangible common equity was 14.4%, while its return on average assets was 1.40%. The earnings per share (EPS) of $0.40 was in line with analysts' estimates. Total loans grew by 2.7% to $8.7 billion, driven by an increase in dairy and livestock loans.

Publication Date: Feb -10

📋 Highlights
  • Profitability Streak Continues: Net earnings of $55M ($0.40/share) in Q4 2025, up from $52.6M ($0.38/share) in Q3 2025.
  • Net Interest Income Growth: Increased by $7M (6% QoQ) and $12.2M (11% YoY), reaching $122.7M in Q4 2025.
  • Loan Portfolio Expansion: Total loans rose to $8.7B, with dairy/ livestock loans up $139M due to higher line utilization (64% to 78%).
  • Nonperforming Loans Decline: Reduced by $20M to $8M, with allowance for credit loss at 0.89% of gross loans ($77M).
  • Heritage Deal Progress: $400M in Heritage’s single-family loans to be sold, replaced by shorter-duration investments post-merger.

Loan Growth and Yield

The bank's loan pipelines remain strong going into 2026, with average yields on loan originations in the fourth quarter of approximately 6.25%. The loan growth was driven by an increase in dairy and livestock loans, with line utilization increasing from 64% at the end of the third quarter to 78% at the end of the fourth quarter. The bank is seeing growth in short-term loans, with customers opting for 5-3 year loans instead of 7-10 year loans, contributing to the yield.

Asset Quality and Credit Loss Allowance

The bank's asset quality remains stable, with nonperforming and delinquent loans decreasing by $20 million to $8 million at December 31, 2025. The allowance for credit loss was $77 million, or 0.89% of gross loans, which is 133% of the bank's combined nonperforming assets and classified loans.

Valuation and Outlook

With a Price-to-Tangible Book Value (P/TBV) of approximately 1.27, the bank's valuation appears reasonable. The bank's Net Interest Margin (NIM) was stable, and the Dividend Yield is attractive at 3.77%. Analysts estimate revenue growth at 14.6% for the next year. The bank is planning to integrate Heritage Commerce, which is expected to increase loan growth. The bank remains committed to its customers and associates, and is well-positioned for a successful 2026.

3. NewsRoom

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Jupiter Asset Management Ltd. Invests $896,000 in CVB Financial Corporation $CVBF

10:41

Source: defenseworld.net

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Citizens Business Bank Recognized by Forbes as a Best Bank in America for 2026

Feb -04

Source: globenewswire.com

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CVB Financial (NASDAQ:CVBF) Share Price Crosses Above Two Hundred Day Moving Average – Should You Sell?

Jan -31

Source: defenseworld.net

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Flushing Financial Investor Alert: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of Flushing Financial Corp. - FFIC

Jan -24

Source: prnewswire.com

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CVB Financial Corp. (CVBF) Q4 2025 Earnings Call Transcript

Jan -22

Source: seekingalpha.com

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Compared to Estimates, CVB Financial (CVBF) Q4 Earnings: A Look at Key Metrics

Jan -22

Source: zacks.com

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CVB Financial (CVBF) Meets Q4 Earnings Estimates

Jan -22

Source: zacks.com

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CVB Financial Corp. Reports Earnings for the Fourth Quarter and the Year Ended 2025

Jan -21

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.00%)

6. Segments

Traditional Banking

Expected Growth: 1.0%

CVB Financial Corp.'s traditional banking segment growth is driven by a 1.0% increase in loan portfolio, fueled by a strong California economy, diversified industry mix, and strategic branch expansion. Additionally, deposit growth and a stable net interest margin contribute to the segment's growth, while disciplined expense management and solid credit quality support profitability.

7. Detailed Products

Commercial Banking

CVB Financial Corp. offers a range of commercial banking services, including cash management, treasury management, and commercial lending to businesses of all sizes.

Consumer Banking

CVB Financial Corp. provides consumer banking services, including checking and savings accounts, credit cards, and personal loans to individuals.

Mortgage Banking

CVB Financial Corp. offers mortgage banking services, including residential and commercial mortgage lending, to help individuals and businesses finance their properties.

Treasury Management

CVB Financial Corp. provides treasury management services, including cash management, wire transfers, and account reconciliation, to help businesses manage their finances.

Wealth Management

CVB Financial Corp. offers wealth management services, including investment management, trust services, and financial planning, to help individuals and businesses achieve their financial goals.

8. CVB Financial Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

CVB Financial Corp. operates in the banking industry, which has a moderate threat of substitutes. While customers have some alternatives, such as credit unions and online banking platforms, they are not easily substitutable.

Bargaining Power Of Customers

CVB Financial Corp.'s customers have limited bargaining power due to the company's strong brand and diverse product offerings. Customers are not concentrated, and the company has a large customer base.

Bargaining Power Of Suppliers

CVB Financial Corp. has a diverse supplier base, and no single supplier has significant bargaining power. The company's suppliers are not concentrated, and the company has multiple options for sourcing.

Threat Of New Entrants

The banking industry has high barriers to entry, including regulatory hurdles and capital requirements. New entrants would face significant challenges in competing with established players like CVB Financial Corp.

Intensity Of Rivalry

The banking industry is highly competitive, with many established players competing for market share. CVB Financial Corp. faces intense rivalry from other banks and financial institutions, which can lead to pricing pressure and competition for customers.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 68.02%
Debt Cost 4.02%
Equity Weight 31.98%
Equity Cost 6.30%
WACC 4.75%
Leverage 212.66%

11. Quality Control: CVB Financial Corp. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Texas Capital Bancshares

A-Score: 6.7/10

Value: 7.2

Growth: 5.2

Quality: 7.2

Yield: 5.0

Momentum: 6.0

Volatility: 9.7

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Huntington Bancshares

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Value: 6.7

Growth: 4.8

Quality: 6.0

Yield: 8.0

Momentum: 6.0

Volatility: 6.7

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Citizens Business Bank

A-Score: 6.1/10

Value: 6.1

Growth: 4.9

Quality: 7.9

Yield: 8.0

Momentum: 2.5

Volatility: 7.3

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Bank of Hawaii

A-Score: 6.0/10

Value: 6.0

Growth: 3.7

Quality: 7.5

Yield: 8.0

Momentum: 3.0

Volatility: 8.0

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Old National

A-Score: 5.7/10

Value: 5.7

Growth: 5.6

Quality: 5.7

Yield: 6.0

Momentum: 4.5

Volatility: 7.0

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Pinnacle Financial Partners

A-Score: 5.4/10

Value: 7.0

Growth: 7.4

Quality: 7.7

Yield: 2.0

Momentum: 2.0

Volatility: 6.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

20.05$

Current Price

20.05$

Potential

-0.00%

Expected Cash-Flows